Record $15b Israeli high-tech exits in 2014

PwC Israel: In 2014, many more mature Israeli high-tech companies preferred an IPO to being acquired.

Israeli high-tech exits doubled to a record $15 billion in 2014. This has been by far the best-ever year for the country's high-tech and biomed sector in terms of exits, according to figures published today by PwC Israel.

PwC Israel partner, High-Tech Assurance Practice, Rubi Suliman said, "In 2014, the stars were aligned exactly right for Israeli high-tech. The IPO window was open in the US and England, the maturity of many Israeli companies and investors, the major availability of money for high-tech from buyers and investors, and of course the strength of Israeli high-tech that knew how to reinvent itself and adapt to the times."

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In 2014, there were 70 IPOs and mergers and acquisitions in Israeli high-tech, up from 45 such deals in 2013. Between 2005 and 2009 the number of deals (but not the total amount of money involved) surpassed 2014, with 76, 93, 88, 84 and 73 deals respectively.

In 2014, there were 18 IPOs totaling $9.8 billion compared with just $1.2 billion raised in 2013. There were also mergers and acquisition worth $5 billion in 2014, down from $6.5 billion in 2013. The fall shows that many more mature Israeli high-tech companies preferred an IPO to being acquired. 52 Israeli companies were acquired in 2014, compared with 39 in 2013.

PwC Israel found that the value of the average deal in 2014 was $212 million, compared with $170 million in 2013. Nasdaq was the main venue for Israeli IPOs in 2014 with 67% of the offerings, London's AIM saw 28% of offerings and the NYSE 5%.

In terms of sectors, semiconductors saw deals worth $5.7 billion in 2014 followed by IT and software with $3.08 billion, life sciences with $2.2 billion, Internet with $1.8 billion, communications with $1.44 billion, and cleantech with $430 million.